Expecting more, indices fall after RBI's rate pause; Sensex dips 294 points

The NSE Nifty declined 91.85 points or 0.49 per cent to end at 18,634.55

Photo: Bloomberg

FILE IMAGE | Photo: Bloomberg

Press Trust of India Mumbai

Listen to This Article

Equity benchmarks Sensex and Nifty surrendered early gains to close with losses on Thursday, snapping their four-day winning streak as investors pared exposure to auto, bank and IT stocks after the RBI left its key interest rate unchanged.

After remaining in the positive territory for most of the session, the 30-share BSE Sensex fell 294.32 points or 0.47 per cent to settle at 62,848.64. During the day, it tumbled 353.23 points or 0.55 per cent to 62,789.73.

The NSE Nifty declined 91.85 points or 0.49 per cent to end at 18,634.55. “Investor sentiment took a downturn following the in-line monetary policy announcement by the RBI, as the market had higher expectations for a more optimistic revision in the inflation outlook, taking into account the recent easing of inflation data. The RBI’s decision to lower the inflation rate by only 10 bps suggests a cautious stance due to geopolitical uncertainties, the potential impact of El Nino and the increase in Minimum Support Price, Vinod Nair, Head of Research at Geojit Financial Services, said.

Kotak Mahindra Bank was the biggest loser in the Sensex pack, sliding 2.68 per cent, followed by Tech Mahindra, Mahindra & Mahindra, Axis Bank, Hindustan Unilever, Tata Motors, Tata Consultancy Services, Bajaj Finserv, Bajaj Finance, Nestle and Titan.

In contrast, NTPC, Power Grid, Larsen & Toubro, HDFC, Reliance and HDFC Bank were the gainers. “Indian equities witnessed profit booking on the day of the RBI policy meeting outcome, which was on expected the RBI policy outcome; markets saw some profit booking in the interest rate-sensitive sectors, which dragged the indices down...Except for Metals, all sectors ended in red,” Siddhartha Khemka, head - of retail research, at Motilal Oswal, said.


Also Read

MPC lowers projection for inflation, raises growth outlook a bit in FY24

RBI Monetary Policy: Repo rate up by 25 bps, FY23 inflation pegged at 6.5%

RBI MPC: When and where to watch policy announcement by Shaktikanta Das

RBI MPC: When and where to watch policy announcement by Shaktikanta Das

No change: MPC presses 'pause' after hiking rate by 250 bps since May 2022

Sebi makes rule for upstreaming of client funds by brokers to clear corps

NTPC in a sweet spot; likely to be poised for leadership in renewables

Tax changes slow new MF scheme launches; demand for debt funds takes a hit

Brokerages put medal to metal on Tata Motors stock, maintain bullish stance

Shares of Zomato rise above their IPO price after more than a year

First Published: Jun 8 2023 | 10:39 PM IST

Explore News